Welcome relief for pension fundsDOWNLOAD
The Budget has extended the concession made available to account based superannuation pension recipients for another year.
In February 2009, a 50% reduction in the minimum pensions required to be paid from account-based pensions was announced. This reduction was to apply to the 2008-09 year only.
“So the extension of the 50% concession for a further year is a welcome move,” said Deloitte Superannuation Partner, John Randall.
“Pension funds are still suffering cash flow difficulties, particularly those that are self managed. This has eroded funds’ ability to pay minimum pensions without fire sales of investments even though there may have been some recent positive economic signs,” he said.
“This extension of the 50% reduction in the minimum pension requirements should give some breathing space to help retirement savings recover,” Randall said.